Explain the importance of service sector in providing employment and promoting exports
Answers
Answer:
The service sector makes an important contribution to GDP in most countries, providing jobs, inputs and public services for the economy. Trade in services can improve economic performance and provide a range of traditional and new export opportunities.
Answer:
One factor that could slow growth is cost. In the past Chinese governments were happy to throw endless pots of money at favoured state firms in industries deemed “strategic”. Times are changing, however. Economic growth is slowing, and the government must now deal with massive debts left over from previous investment binges. Since the export-oriented and investment-led model of growth is sputtering, officials may soon be keen to boost domestic consumption rather than merely shovel subsidised capital at big investment projects.
And it is not just that China may—and should—be starting to pay attention to the true cost of infrastructure projects. Rapid technological advances are also making low-carbon alternatives to nuclear power appear more attractive. Bloomberg New Energy Finance, an industry publisher, forecasts that onshore wind will be the cheapest way to make electricity in the country by 2030. Though coal will remain China’s leading fuel for some time, Bloomberg’s analysts think that renewables could produce three times as much power as nuclear in the country by that year.
What is more, as a latecomer, China had the chance to standardise designs of new nuclear plants to gain economies of scale and minimise risk. But rather than build copies of safe and proven designs from Westinghouse of America or Areva of France, it is insisting on “indigenisation”. This approach is in line with China’s desire to create national champions in key industries, as it has in high-speed rail.